Economy Flat - Car Trade Struggling.
Reviewing the UK retail car prices over the last 6 months shows little sign of economic recovery.
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Used Car Expert's latest car values and depreciation report for January 2012 shows that some regions are moving forward, but most are stagnant and struggling economically. Looking at the UK car price over the last 6 months reveals that UK economy is still flatlining and could be in danger of dipping into recession. Editor Matt Tumbridge commented, "Car dealers have cut car prices as low as they can, and did so a while ago. But the market hasn't picked up in response, so the prices have stayed where they are. There has never been a better time to buy a car, which sadly also means there probably hasn't been a worse time to sell. Dealers and jobs are probably at risk because the market has been so flat for so long."
Commenting on 'dealer desperation' Tumbridge added, "Northern Ireland dealers seem to have given up trying to drive volume through discounting to match mainland prices and so their prices have rocketed up by as much as 20% or £2,000 on average in recent weeks. It looks like they are going to try and make a profit through healthy margins rather than volume selling. I wouldn't be surprised to see dealers in other regions do the same. In the North for example, prices are already on the rise."
According to Tumbridge, if consumers need to change their car then there is still plenty they can do to make it easier to sell their current car and make sure they get the best deal on a new one. He explained, "Consumers can use our Supply & Demand Checker and price guide to establish how likely their car is to sell in their area and at what price to pitch it. The price guide is equally valuable in deciding what to pay for a car as you can adjust it by region, mileage and specification."
- For a region-by-region analysis, see below
- UsedCarExpert.co.uk reaches 4 million car buyers per year
- It is home to the UK's most accurate consumer car prices, fault check guides, used car reviews and used cars for sale
- UK car retail prices are used for this report, including a representative spread of all makes, models and ages from 6 months to 10 years old.
- For media comment, contact action@usedcarexpert.co.uk or call 0870 444 2920
Scotland Is Expensive No More
SCOTLAND average car value: £9,108 (Sample size: 36,835)
Scoltand is traditionally one of the most expensive places to buy a used car. But now it has finally dropped out of the top 5 most price regions with prices falling 1% over the last two months. UsedCarExpert.co.uk Editor Matt Tumbridge said, "Scotland is still 6th and under £300 behind the 5th most expsive region, their prices are still £500 more than the North West but these price drops are good news for Socttish buyers. If the prices stay around this price - just £400 under the UK average then it is reasonable to assume the economic outlook is steady and consumers are not over-paying."
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North East Economy Looking Up
NORTH EAST average car value: £10,452 (Sample size: 35,991)
Car prices in the UK, a fast changing indicator of economic confidence, reveal that while many regions are struggling, the North East's car market is booming with prices up 2.7% making the car in the region the most expensive on the UK mainland (Norther Ireland's average is higher). According to UsedCarExpert.co.uk Editor Matt Tumbridge businesses in the North East should be delighted with their performance, "Cars from neighbouring regions are nearly £2,000 less. So dealers in the North East are doing a great job and consumers are obviously feeling relatively flush in the region - this is one of the few good news stories about the economy."
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North West Still Cheap But Improving
NORTH WEST average car value: £8,617 (Sample size: 55,553)
The North West's economy is showing signs of improvement with the region's 'car parc' up 1% or nearly £100 per car. While there is a long way to go before the retail prices in the region match the most expensive in the country, this indicated some confidence from dealers in the market. UsedCarExpert.co.uk Editor Matt Tumbridge's assessment is, "At £8,600 the average retail value of cars in the region is among the cheapest in the country, despite the near by regions all being far more expensive. So clearly things are not booming in the region, but there are signs in this latest report that things are improving. And prices like these should encourage local car buyers out onto the forecourts."
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East Midlands Economy Still Sliding
EAST MIDLANDS average car value: £8,463 (Sample size: 57,237)
Since November, average used car retail prices have only gone one way - down. The slide at the end of last year was quite minor but not prices have fallen a further £300 over January to £8,463, one of the lowest prices in the UK and £2,000 lower than regions with more robost economic outlooks like the North East. UsedCarExpert.co.uk Editor Matt Tumbridge commented, "If you need a car in the East Midlands, buy one now. They can't get much cheaper, and frankly your region needs you; Dealers and jobs are at risk. It's always better to buy locally if you can, in case there is a problem, and when prices are this low there is no reason not to."
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Competive West Midlands Market Buoyant
WEST MIDLANDS average car value: £9,381 (Sample size: 64,826)
Despite a 3% correction over the last month in used car retail prices, prices in the region are firm, coming in just under the UK average of £9,511.09. Matt Tumbridge, Editor of UsedCarExpert.co.uk said, "This is a terriffic indication of the strength of the West Midlands economy - especially when contrasted with the struggling East Midlands. Dealers are selling cars, consumers are gtting a fair price. This is good news for the region."
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Wales Economy Outperforms Scotland
WALES average car value: £9,349 (Sample size: 14,114)
While car prices in Wales are down 1% over the las month, cars in Wales are more expensive than Scotland - a reversal of the usual position. UsedCarExpert.co.uk Editor Matt Tumbridge commented, "This is a good sign for Welsh business. It suggests consumers are out spending and with an average retail price so close to the UK average of £9,511.09 a healthy balance is being struck between consumers getting a fair price and dealers making enough to live."
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South West Cars Are UK's Cheapest
SOUTH WEST average car value: £8,207 (Sample size: 51,723)
At £1,300 less than the UK average and over £2,000 less than the most expensive region in England (the North East), things look bleak for business in the South West. UsedCarExpert.co.uk Editor Matt Tumbridge explains, "Prices in the region just keep dropping and dropping, but the drops are tiny now becasue dealers have nothing left to give. Consumers just don't have the money to buy cars in this region."
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South East Struggles On
SOUTH EAST average car value: £8,289 (Sample size: 65,086)
Prices in the South East suggest that there is still more choice than there is demand. UsedCarExpert.co.uk Editor Matt Tumbridge commented, "Dealers in the Home Counties and accross the South East must wonder what they need to do to improve their luck. Prices have been among the lowest in the country for as long as I can remember, yet business isn't picking up. At over £1,000 less than the UK average and 1.2% down over the last month, prices can't go lower. Consumers just don't want to part with their cash it seems."
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Rip-Off London Learning Its Lesson?
GREATER LONDON average car value: £10,116 (Sample size: 40,461)
London is always one of the most expensive places to buy a car. But prices have now fallen every month since September 2011. And the most recent fall over January has been a significant £337. UsedCarExpert.co.uk Editor Matt Tumbridge noted, "January always sees an increase in car buyer interest, so if dealers are dropping prices in January it tells you something is wrong. London's car market has been overheated for a while and we have been telling car buyers to go to the surrounding counties for the deals. Clearly they are starting to take that advice and so prices are softening in London."
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East Anglian Car Prices Down But Not Out
EAST ANGLIA average car value: £10,036 (Sample size: 51,851)
East Anglia's car prices are £250 down on December and £400 down on November, suggesting that consumers are not spending in the area. But according to UsedCarExpert.co.uk Editor Matt Tumbridge, it is too early to worry. "With an average price over £10,000, cars in East Anglia are still £500 higher than the UK average, which suggests a robust market. These drops are probably just corrections to the market to bring it nearer to the rest of the country. Our advice to conusmers is still to look outside the region when buying used cars because there are savings of up to £700 to be had quite easily."
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